A SURPRISING ADDITION TO OUR “THINGS CAN’T BE ALL THAT BAD” SERIES
[Saturday], we showed you more proof that “things can’t be all that bad” in America. Today, we offer yet another reason to be bullish on the U.S. economy…
We have a surprising addition to that list: U.S. unemployment.
But companies that handle employment-related services are telling a different story.
Automatic Data Processing (ADP) is a “dominator” in services like payroll processing and benefits administration.
The company’s customer base includes over half a million companies, with more than 80% of its business coming from the U.S.
In short, ADP is a perfect “bellwether” for employment trends. If its customers aren’t hiring, its business can’t grow.
As you can see in today’s chart, ADP is doing well.
Like other parts of the U.S. economy, business isn’t booming… but it’s picking up. The company’s main source of revenue – “payroll services” – grew 5% last year. That’s more than twice the growth rate from the previous year.
As long as shares of ADP are in a steady uptrend, it’s hard to deny that that the U.S. economy, while not great, “can’t be all that bad.”
– Larsen Kusick
Source: Market Notes